UOP Hydroprocessing Innovations Supplement Tech

  • View

  • Download

Embed Size (px)

Text of UOP Hydroprocessing Innovations Supplement Tech

  • 7/27/2019 UOP Hydroprocessing Innovations Supplement Tech


    Maximize Assets.Drive Results.Hydroprocessing technology innovations

    Special Supplement to

  • 7/27/2019 UOP Hydroprocessing Innovations Supplement Tech


    Maximize Assets. Drive Results.Hydroprocessing technology innovations

    Refining industry begins a slow recovery in 2010Alfred L. Luace Purvin & Gertz Inc.Pace of recovery in oil refining profitability will be driven byproduct demand growth and rationalization of weak capacity

    Driving optimization and profitabilitythrough technology innovationAdvance in hydroproce ing can help refiner to addrehifting market demand, tighter fuel pecification , and more

    Cutting-Edge CatalystsA generation of hydroproce ing cataly t to maximizedi tillate yield and improve refinery profitability

    Aligned to offer you more UOP and Albemarle are working togetherfor fully integrated hydroproce ing olution

    Prepare your short-termand long-term diesel strategiesLeverage cataly t and technology breakthroughto balance die el-ga oline production efficiently

    Tpra chooses UOP hydroprocessing

    to boost ULSD yields U ing an innovative approach, thi refiner achievedgreater than $20 million in incremental annual revenue

    Looking for new ways to addressgrowing energy demand Converting alternative feed tock to high-value product

    Photo credits: Cover and Rodeo Unicracker (page 13)photography courte y of ConocoPhillip .

    Table of Contents








  • 7/27/2019 UOP Hydroprocessing Innovations Supplement Tech

    3/20maximize assets. Drive results.

    I 2

    Sponsored Supplement

    Market Overview by Purvin & Gertz, Inc.

    After several years of strong marginsand robust global demand growth, therefining industry persevered through themarket lows of 2009. Significant new refinery capacity additions combined witha dramatic fall in demand for refined prod-ucts has created a significant near-termoversupply situation. The supply situationis being further eroded by the requirementto blend increasing volumes of ethanol andbiodiesel into products, thereby reducing crude oil processing requirements. Thisarticle highlights some of the key conclu-sions from the recent update of Purvin &GertzsGlobal Petroleum Market Outlook.

    Economic outlook. The recent globalrecession has had a significant medium-term impact on all countries, but over thenext 20 years, we expect world economicgrowth to average roughly 3.5%. Growth

    will be higher in the developing countriesthan in the mature, developed regions suchas Europe and North America. Strongly divergent economic growth patterns in thedeveloping vs. developed countries resultin equally strong divergence in petroleumdemand growth. Demand in the develop-ing countries will surpass Organizationfor Economic Co-operation and Devel-opment (OECD) demand by 2015, andvirtually all future growth will be outsideof the OECD countries (North Amer-ica, Europe, and Japan). China alone isexpected to account for over 40% of non-OECD demand growth through 2030.

    Refined product demand. Thechallenge to supply energy to a growing global population of expanding financialmeans is huge. Energy requirements willremain high in terms of consumption percapita even as major advances in energy efficiency are deployed. The large poten-tial for global demand growth underpinsour view of higher future petroleum

    prices. Energy efficiency gains will bedriven by higher prices and in part by implementation of greenhouse gas initia-tives in major economies.

    Petroleum will continue to supply over92% of the energy demand in the trans-portation sector through 2030. Diesel, jetfuel and residual fuel oil are expected to bethe fastest growing transportation fuels.Most of the gasoline demand growth willbe in developing countries. Use of naturalgas and electricity in the transportationsector will continue to expand in nicheapplications such as mass transit and localfleet vehicles, but will not become sig-nificant private transport fuel alternativesuntil after 2020.

    Petroleum will supply an increasing share of the energy demand in the othersectors of the world economy. Most of thisincrease will come from higher use of eth-ane, liquefied petroleum gas (LPG) andnaphtha for petrochemicals manufacturing in the developing countries of Asia and theMiddle East. Another notable increase indemand will come from increased use of residual fuel oil for power generation inthe Middle East.

    Shortly after 2015, demand in thenon-OECD countries is expected to

    surpass demand in the OECD countries(Fig. 1). Refined product demand inOECD countries suffered a steep dropin 20082009 to 41.4 million (MMbpd)in 2009, and the forecast demand growthof only 0.2% per year through 2030 willkeep demand below the 2005 peak level.Demand in non-OECD countries willgrow rapidly from the current level of 36.0 MMbpd in 2009 to 56.8 MMbpdin 2030, a growth rate of 2.2%. Of theexpected 20.8 MMbpd increase, China alone will account for over 43% of thisincrease, or 9.1 MMbpd.

    Over the last few years, gasoline mar-kets in the Atlantic Basin have undergoneprofound changes both in terms of demandtrends and the introduction of biofuels. The

    widespread introduction of ethanol intothe US gasoline supply initially replacedmethyl tertiary butyl ether (MTBE), butmore recently, ethanol has added signifi-cantly to the domestic gasoline supply. Theincreased blending of ethanol as required by the Renewable Fuels Standard regulationsand decreased gasoline demand in responseto record high consumer prices resulted ina significant decrease in the consumptionof petroleum-based gasoline componentsin the US in 2008 and 2009.

    Refining indu try begin a

    low recovery in 2010Pace of recovery in oil refining profitability will be driven by produdemand growth and rationalization of weak capacity

    A. L. LuAces, Purvin & Gertz, Inc., Houston, Texas

    Latin AmericaMiddle EastIndiaChinaOther Countries








    1990 1995 2000 2005 2010 2015 2020 2025 2030

    NON-OECD REFINED PRODUCT DEMAND(Million Barrels per Day)

    Fig. 1. Non-OECD refined product demand1990 to 2030.

  • 7/27/2019 UOP Hydroprocessing Innovations Supplement Tech


    Maximize Assets. Drive Results.Hydroprocessing technology innovations

    3 I WWW.uOP.COm

    Global demand for diesel is growing much faster than gasoline demand. Key factors are dieselization of the personalvehicle fleet in Europe, growing penetra-

    tion of ethanol into gasoline, improving vehicle efficiency and higher sustainedprices affecting personal vehicle use. Die-sel demand in the Atlantic Basin caughtup to gasoline demand in 2008, and ispoised to return to growth while gaso-line stagnates. Refiners will be pressed toincrease diesel output and reduce gasolineyield, and Europes structural surplus of gasoline will persist.

    Tighter diesel sulfur specifications arepropagating throughout the world afterhaving been implemented in Europe,

    Japan and North America. In order toimprove air quality, many of the worldsmegacities (i.e., Beijing, Shanghai, MexicoCity, So Paulo and Mumbai) now requireclean burning diesel and gasoline with sul-fur levels below 500 ppm. Over the next 5to 10 years, we expect that most countries

    will begin to adopt these requirementsand some will go even further to requireultra-low sulfur diesel (ULSD) and gaso-line. Several states in the US are planning to tighten heating oil sulfur specificationsby the end of this decade. Combined,these actions will have the eventual effectof requiring additional hydroprocessing capacity in refineries.

    Bunker fuel is the only growth marketfor residual fuel oil, but annual growthvaries with the demand for petroleum,containerized cargo and minerals. Resid-ual fuel use for power generation andother stationary applications has beenin decline for many years as increasing supplies of natural gas have gained mar-ket share based on pricing and/or envi-ronmental benefits. One exception isthe Middle East where Purvin & Gertzexpects a significant increase in the useof residual fuel oil for water desalinationand electric power generation.

    New ship bunker fuel quality require-ments adopted by the International Mari-time Organization (IMO) will impact therefining industry as well as the shipping and bunker fuel supply industries. In thenear term, the most significant impact

    wil l be the fuel substi tution (diesel vs.residual fuel oil) requirements of theIMO regulations for the EnvironmentalControl Areas (ECAs) in North Europeand North America.

    The global bunker quality requirementof 0.5% sulfur fuel in 2020/2025 is a complicated inter-industry topic that wasaddressed by Purvin & Gertz in a separate

    comprehensive study titledResidual Fuel Market Outlook.How the shipping indus-tries respond to the changes in regionaland global bunker sulfur fuel requirementsand to what degree onboard scrubber tech-nology is adopted are key factors affect-ing the bunker fuel outlook. Increasedcarbon emissions from these new speci-fication requirements must also be con-sidered. Investment in large scale residuehydroprocessing would be a major shift inrefining strategy and the displacement of 4 MMbpd of residual bunker demand todistillate fuel would require major addi-tional refinery conversion investments. Atthe same time, the suitability, acceptanceand adoption of onboard scrubbers is nota foregone conclusion.

    Crude oil supply. Crude oil produc-tion from non-OPEC countries is notexpected to expand fast enough to keeppace with demand growth after the eco-nomic recovery is well underway. Strong growth in crude pro

Search related